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Logistics CH1 1.Outsourcing involves: A. building a factory in another country. B. moving company facilities away from the home office. C. hiring foreign nationals to manage parts of the business. D. obtaining materials, parts, and products from other companies. 2.The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is not included? A. Technology B. Inventory deployment C. Complexity D. Inventory carrying costs

3.Which of these flows is only one way? A. Financials B. Products and services C. None of these answers D. Information

4.Cost/Value refers to A. U.S. firms competing in the global arena. B. product variety. C. getting the best value for the money spent. D. the importance of cost and value at the very end of the supply chain.

5.Which force in the economic and political landscape is not driving change A. Tariffs B. Empowerment

C. Globalisation D. Technology E. Organisational consolidation

6.Organisations can be classified in the following logistics systems: A. Reverse system B. Balanced, reverse and outbound C. Balanced system D. Balanced and reversed E. Outbound system 7.Which of the following is not part of the Supply Chain network? A. Terminals B. plants C. distribution centers D. customers 8.Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape? A. Globalization B. Environmental concerns C. Technology D. Government policy

9.One of the major challenges of supply chain management is A. forward buying B. maintaining the visibility of inventory. C. Pushing inventory back to vendors D. building safety-stock inventory.

10.Performance measurement is important because A. companies presently operating in the European Economic Community need to understand how its competitors are doing. B. without it, managers would not know how the global economy is doing

C. it allows firms to rate competitors D. lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.

CH3 1.Ensuring the availability of the right product, in the right quantity, and the right condition, at the right place, at the right time, for the right customer at the right cost, is which definition of logistics? A. supply chain logistics B. Society of Logistic Engineers C. Seven Rs D. Council of Logistics Management

2.Materials handling is concerned with A. short-distance movement. B. scheduling trade-offs. C. inventory levels. D. breaking bulk 3. Marketers have begun to recognize the strategic value of place in the marketing mix, as well as the benefits resulting from high-quality logistical services. As a result, which has been recognized as the interface activity between marketing and logistics? A. customer service B. price C. product D. promotion

4.It can be argued that management A. sales B. manufacturing C. finance D. quality

?

is the second language of logistics and supply chain

5.What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse? A. physical distribution B. order fulfillment C. materials handling D. business logistics 6. A(n) _______ relationship exists between the cost of lost sales and inventory cost. A. Proportional B. reverse C. inverse D. non linear 7.Water Cruisers is located in Jacksonville, Florida, and makes small yachts and luxury pontoon boats for customers on the East coast of the United States. Each boat requires thousands of parts purchased from over 1,000 vendors. A number of boats are in production at any one time, so a large number of parts constantly arrive and are stored. Once a boat is finished, it is sailed up the coast to a convenient port for customer delivery. Which type of logistics system does Water Cruisers use? A. heavy outbound B. heavy inbound C. reverse system D. balanced system

8.The product’s dollar value typically affects the cost of logistics activities. Which is not one of these costs? A. warehousing costs B. promotion costs C. packaging costs D. transportation costs 9.When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called A. cost center analysis. B. least cost analysis. C. short run analysis D. link node analysis.

10. A ______ analysis examines a logistics system over a long time period or range of output. A. cost center analysis B. dynamic C. least cost analysis D. link node analysis 11.What are fixed spatial points where goods stop for storage or processing? A. nodes B. links C. fulfillment centers D. cost centers 12. Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely manner. This is a A. a definition provided by the Council of Logistics Management. B. definition from an inventory perspective. C. general definition. D. definition offered by the Society of Logistics Engineers.

13.An important sustainability issue that has received much more scrutiny in recent years is the: A. effort to move warehouse storage closer to consumers B. reduction in packaging waste by using alternate materials C. focus on adequate inventory levels D. Emphasis on materials handling and warehouse design

14.What technology has helped make the physical inventory-taking process more efficient and effective? A. scanning of bar-coded RFID tags B. just-in-time inventory C. advances in forecasting D. transportation management systems

15.All EXCEPT one are major challenges in Supply Chain Management implementation: A. Short term focus B. Risk and reward sharing C. Loyalty and confidentiality D. Performance measurement

16.________?______________ is the value given to a product by virtue of the fact that the purchaser has the legal right to own and use it freely. A. Form utility B. Time utility C. Place utility D. Possession utility

17.If a big retailing organization is opening their outlets in each city and all regional towns in every state it’s creating value for its customers by generating: A. possession utility B. time utility C. place utility D. form utility

18. Length of production runs, seasonal demand, packaging and outsourcing is relevant to logistics interfacing which one of the following business functions: A. finance B. operations C. marketing D. human resources

19. Manufacturer of flexible packaging is returning 5 tone of Al-foil to the supplier because it does not meet criteria in the specification. The manufacturer is exercising which of the following logistics activities: A. salvage and scrap disposal B. reverse logistics C. inventory control D. purchasing 20.Quality assurance department of the injection moulding company has rejected a batch of 1000 plastic hangers because it does not meet criteria in the specification. An agreement was reached with a second hand dealer to buy it with a heavy price discount. The manufacturer is exercising which of the following logistics activities: A. Purchasing B. Inventory control C. Salvage and scrap disposal D. Reverse logistics 21.Which one of the following statements is true: A. Movement of small quantities over short distances is almost always accompanied by lower cost per unit: B. Movement of large quantities of freight is almost always accompanied by higher cost per unit; C. The freight rates published or negotiated with transport companies do not discriminate on transported volumes. D. The freight rates published or negotiated with transport companies almost always reflect a discount for volumes;

22.If company is shipping 10,000 pillows to a customer in UK logistics manager should be aware of which factor that can affect the most company’s total logistic cost: A. Susceptibility to damage B. Density (weight/space ratio) C. Dollar value D. Substitutability

23.All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list: A. transportation B. scheduling C. forecasting D. marketing

24.As a firm spends more on transportation service, cost of lost sales: A. Stay the same B. Can't be determined C. Decrease D. Increase 25.As the dollar value of a product increases, packaging costs will: A. Decrease B. Increase C. Can't be determined D. Stay the same 26.As the weight density of a product decreases, transportation cost per pound will: A. Decrease B. Increase C. Can't be determined D. Stay the same 27.As the dollar value of a product decreases, its transportation cost: A. Can't be determined B. Increase C. Stay the same D. Decreases 28.The value that is added to goods through a manufacturing or assembly process is: A. time utility B. place utility C. form utility D. possession 29.Which of the answers below is an example of the creation of form utility by a logistics activity? A. when firm's finance manager approves customer purchases on a credit basis

B. when Dell combines components with software to produce a computer to a customer’s specifications C. when lumber is cut and made into a chair D. the breaking bulk and repackaging at a distribution center 30.The utility that is created by moving goods from production points to market points where demand exists is referred to as: A. place B. time C. possession D. form 31.Logistics creates which utility through production forecasting, production scheduling and inventory control? A. possession utility B. time utility C. form utility D. quantity utility 32.Time utility depends on A. having the product available when the user wants it. B. transportation companies delivering on time. C. when the carrier picks up the shipment. D. proper forecasting. 33.What is often the largest component of logistics costs? A. shipper-related costs B. inventory costs C. administrative costs D. transportation costs Ch7 1.An outbound-to-customer logistics system is also referred to as A. store fulfillment B. integrated fulfillment C. dedicated fulfillment. D. physical distribution. 2.Exponential smoothing

A. is used to determine random variations. B. is one of the most commonly used techniques. C. uses primarily weighted averages to compensate for errors. D. is used to reduce channel fluctuations.

3. Four types of forecast error measures can be used. Which one of the following is not one of the four types? A. exponential smoothing for trends B. mean squared error C. cumulative sum of forecast errors D. mean absolute deviation 4. Many industry initiatives have attempted to create efficiency and effectiveness through the integration of supply chain activities and processes. Among the various initiatives is/are A. vendor-managed inventory (VMI) B . efficient consumer response (ECR) C. all of these answers D. quick response (QR) 5.An inbound-to-operations logistics system is also referred to as A. physical supply. B. physical distribution. C. demand management. D. dedicated fulfillment. 6.Demand management includes A. Flows of products B. Flows of services. C. Flows of capital.! D. All of the these answers 7. All EXCEPT one are components of a demand pattern. Which one is not? A. Mean absolute variation B. Seasonality C. Trend D. Random variation

8.The term functional silos refers to: A. a technique to secure corporate marketing strategies. B. lack of coordination between departments. C. product storage for physical supply. D. the non communication between customers and vendors.

9. Why is it important to track the forecast? A. To improve forecasting methods and accuracy B. To reduce seasonality in demand C. To eliminate random variations in demand D. To compare the actual sales with the actual demand 10. Oversupply is created by A. returns and cancellations. B. poor channel selection. C. phantom demand. D. forecasting failures. 11.The simple moving average technique A. works better for long-range forecasts than short-range forecasts B. requires minimal amount of data C. reacts well to variations that occur for a reason D. reacts well to random variations 12.The essence of demand management is to estimate and manage ___________ and use this information to make operating decisions. A. SO&P processes B. channel orders C. customer demand D. vendors and suppliers 13.The internal balancing method deals with A. channel selection. B. functional silos. C. inventory and production flexibility. D. price and lead time.

14.One type of demand fluctuation is caused by random variation. What is random variation? A. errors in inventory management B. a development that cannot normally be anticipated C. failure to properly execute the SO&P process plan D. errors not caught by using exponential smoothing 15.The weighted moving average method assigns A. a weight to each previous period. B. a weight greater than 1. C. information based on a simple average. D. a value in each period being averaged.

Ch8 1. Customer service can be defined as A. the SCOR model B. a philosophy C. anything that touches the customer D. order fulfillment

2. Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to A. attract new customers. B. manage inventory more effectively C. develop “Clicks” and “Bricks” firms D. increase the velocity of cash back to the selling organization.

3. Service level of 95% means that A. B. C. D.

there is a 95% chance that 95% of demand during lead time will be met the service goal is to meet 95% of demand during lead time there is a 95% chance that all of demand during lead time will be met the service goal is to meet 95% of annual demand

4.The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix

A. price B. promotion C. place D. product 5.Which is NOT part of dependability? A. safe delivery B. correct orders C. consistent pricing D. cycle time 6.The SCOR model provides suggested metrics A. for segmenting customers B. for proving a base for ABC costing C. that allow marketing to evaluate channel selection D. across multiple dimensions for each of the five Level One processes 7.Customer relationship management is the art and science of A. positioning customers to improve the profitability of the organization B. customer profitability C. management discipline D. demand management 8.What are the steps in the CRM process? A. segment customer base, then measure service and improve B. segment customer base, identify service/package, then measure service and improve C. measure service, then improve D. segment customer base, then identify service/package 9. Activity Based Costing A. can be combined with customer segmentation B. is too sophisticated for many applications C. is useful for distributions centers but not customers D. is a very new management science 10.Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold. A. gross sales B. gross margin C. the forecast D. back orders

11. The length of time between the purchase of raw materials and the collection of accounts receivable generated in the sale of the final product is called: A. Lead time gap B. Order-to-delivery cycle C. Waiting time D. Cash-to-cash cycle 12.Those customers who are in the “Danger Zone” segment are A. have been a customer for less than a year B. the least profitable C. likely to switch to a competitor D. are using ABC to drive down the price 13.Which one of the following statements is true about the Customer? A. Customer gives us a favour when he/she comes in. B. Customer is the most important person in any business C. Customer is money in cash register. D. Customer is dependant on us. 14. Order management system represents the principal means by which A. price and lead time add value B. customers are segmented by profitability C. buyers and sellers communicate information relating to individual orders of product D. orders are handled inside the company 15.All EXCEPT one are post transaction elements of customer service. Which one is not? A. Installation B. Warranty C. Product tracking D. Policy statement 16.The term replenishment cycle refers to A. orders for raw material B. inventory and material management C. material management D. the acquisition of additional inventory 17.All EXCEPT one are commonly used customer service measures. Which one is not?

A. Product availability B. Stock turns C. Order cycle time D. Service reliability 18.While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on A. variability or consistency of this process B. the use of the ABC process C. customer segmentation D. the use of the SCOR process 19.Which statement is true about limitations of customer satisfaction? A. Satisfied customer doesn’t necessarily mean a happy customer. B. What satisfies one customer satisfies the other. C. Satisfied customer always means a loyal customer. D. Satisfied customer always means a happy customer. CH6 1.Resource requirements planning (RRP) A. checks the feasibility of the master production schedule. B. checks the feasibility of the materials requirement plan. C. is a long-run, macro-level planning tool D. is a long-range materials plan that translates annual business plans. 2. Which of these is NOT a production method? A. make-to-stock B. delayed differentiation C. build to order D. assemble to order 3.A project layout is A. a product-focused layout in which machines and workers are arranged according the progressive sequence of operations. B. a fixed location layout where the product remains in place for the duration of production. C. a floor plan of the production facility. D. a process-focused layout that groups together similar equipment or functions 4. Form utility drives the need for A. time utility and place utility. B. supply chain capabilities only C. supply chain capabilities, time utility, and place utility D. place utility only

5.ckaging is A. a factor in outsourcing B. critical to logistics C. critical to product differential D. critical to manufacturing 6.newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called: A. adaptive manufacturing B. capacity requirements planning C. machine flexibility D. just-in-time inventory 7. In assemble-to-order production, A. the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer. B. highly tailored products are created for the customer whose specifications require unique engineering design or significant customization. C. customer orders are filled from finished goods inventories, and production orders are used to replenish finished goods inventories. D. the finished product is a combination of standard and custom-designed components that meet unique needs of a specific customer. 8. Processes that can produce a range of products are said to have A. routing flexibility B. economies of scope C. economies of scale D. work centers

9. Which is NOT a major challenge for many established manufacturers? A. pressure for efficiency B. expanding product life cycles C. customer demand D. competition 10. A push-based strategy works well for supply chains that focus on A. the immediate delivery of off-the-shelf, low-cost, standardized goods B. work centers and offshore sourcing C. the anticipation of demand or without knowledge...